zoombie, from my seat, exchange rates are not set by speculators taking a stab and competing against each other, but by fundamental domestic (inside borders) economics. It's the value and strength of one currency against the value and strength of another - but I don;t consider this speculation (otherwise everything is purely specuilation).
It's a market, and people trade values.
While speculation in prices produces ripples, the tides and waves that raise and crash on these ripples are fundamental domestic indications.
Interest rates (a huge part of assessing strength), foreign and domestic debt, asset prices of property, incomes, CPI all play a part in assessing a currencies strengths. None of that is speculation.
The US economy is uts from the inside and the USD is the result NOT the cause in this instance. In comparison other economies, the fundamentals of the US are much weaker than its trading neighbours, and hence the value of it's currency is down, because the others are up AGAINST it.
The US domestic needs to recover, to get value back into the USD, 'OR' other competing economies weaken to similar domestic values.
Again, no speculation involved in doing this. You are betting against the run of 5000 pound elephants if you do.
rgds,
pw
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Last
8,558.6 |
Change
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| Open | High | Low |
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| XJO (ASX) Chart |